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Valmont Reports Second Quarter 2020 Results; Operating Performance Improves Despite COVID-19 Disruptions

Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, today reported financial results for the second quarter ended June 27, 2020.

Second Quarter 2020 Highlights (all metrics compared to Second Quarter 2019 unless otherwise noted)

  • Net Sales of $688.8 million declined 1.7%; excluding $13.7 million of unfavorable currency impacts, sales were similar to last year, as strong growth in Utility Support Structures was offset by lower sales in the Coatings segment due to COVID-19 impacts, as expected
  • Operating Income of $43.4 million, or 6.3% of sales ($65.7 million or 9.5% adjusted1) compared to $61.5 million or 8.8% of sales last year; profitability improved in all segments except Coatings
  • Diluted Earnings per Share of $1.06 ($2.00 adjusted1) compared to $1.82; GAAP EPS includes a $16.6 million pre-tax non-cash impairment charge against goodwill and trade names attributed to the Access Systems product line
  • Generated strong operating cash flow of $88.3 million, driven by operating income and working capital management; cash and cash equivalents were $353.3 million at end of second quarter
  • Completed two acquisitions in the Irrigation segment; purchased a majority stake in Solbras - Energia Solar do Brasil, and acquired 100% of the assets of PrecisionKingTM
  • Received a large lattice structures order of approximately $17.0 million for the North American utility market
  • Resumed operations at all Valmont manufacturing facilities
  • Providing key assumptions and indications for the third quarter 2020

Key Financial Metrics

Second Quarter 2020

GAAP

 

Adjusted1

 

 

06/27/2020
2Q 2020

 

06/29/2019
2Q 2019


vs. 2Q 2019

 

06/27/2020
2Q 2020

 

06/29/2019
2Q 2019

vs. 2Q 2019

Net Sales

$

688,808

 

 

$

700,871

 

(1.7)%

 

$

688,808

 

 

$

700,871

 

(1.7)%

Operating Income

 

43,440

 

 

 

61,474

 

(29.3)%

 

 

65,657

 

 

 

61,474

 

6.8%

Operating Income as a % of Net Sales

 

6.3

%

 

 

8.8

%

 

 

 

9.5

%

 

 

8.8

%

 

Net Earnings

 

22,607

 

 

 

39,719

 

(43.1)%

 

 

42,847

 

 

 

39,719

 

7.9%

Diluted Earnings Per Share

$

1.06

 

 

$

1.82

 

(41.8)%

 

$

2.00

 

 

$

1.82

 

9.9%

Average Shares Outstanding

 

21,393

 

 

 

21,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD 2020

GAAP

 

Adjusted1

 

 

06/27/2020
YTD 2020

 

06/29/2019
YTD 2019

vs. 2019

 

06/27/2020
YTD 2020

 

06/29/2019
YTD 2019

vs. 2019

Net Sales

$

1,363,008

 

 

$

1,393,010

 

(2.2)%

 

$

1,363,008

 

 

$

1,393,010

 

(2.2)%

Operating Income

 

110,335

 

 

 

116,076

 

(4.9)%

 

 

132,552

 

 

 

116,076

 

14.2%

Operating Income as a % of Net Sales

 

8.1

%

 

 

8.3

%

 

 

 

9.7

%

 

 

8.3

%

 

Net Earnings

 

65,536

 

 

 

75,823

 

(13.7)%

 

 

85,776

 

 

 

75,823

 

13.1%

Diluted Earnings Per Share

$

3.05

 

 

$

3.46

 

(11.8)%

 

$

3.99

 

 

$

3.46

 

15.3%

Average Shares Outstanding

 

21,471

 

 

 

21,897

 

 

 

 

 

 

 

"Valmont delivered strong second quarter operating performance as our team persisted in serving customers despite COVID-19 challenges, including related shutdowns and economic restrictions," said Stephen G. Kaniewski, President and Chief Executive Officer. "Revenue and profitability were better than expected across all segments, as we successfully managed pricing and operational performance. We completed strategic capacity additions, which contributed to improved performance and revenue growth, particularly in the Utility Support Structures segment. Our consistent focus on liquidity and working capital management led to strong operating cash flows. Importantly, I want to thank all employees for their hard work and resiliency in producing products and providing services that support critical infrastructure sectors and food security around the world. As always, the safety and well-being of our employees remains our top priority."

Second Quarter 2020 Segment Review

Infrastructure

Engineered Support Structures Segment (36.8% of Sales)

Poles, towers and components for the global lighting, traffic and wireless communication markets, engineered access systems, integrated structure solutions for smart cities, and highway safety products

Sales of $253.4 million decreased 2.1% year-over-year due to unfavorable currency impacts of $6.1 million, otherwise sales were similar to last year. Higher volumes in North American transportation and wireless communication markets were offset by lower volumes in international markets attributed to temporary COVID-related facility closures, and strategically exiting product lines in Access Systems.

Lighting and traffic sales of $181.0 million were flat year-over-year. Strong transportation volumes in North America were offset by lower sales in international markets due to temporary facility closures.

Global sales of wireless communication structures and components grew 7.2% to $50.9 million compared to last year. Continued capital spending from wireless carriers in North American markets and higher volumes in Europe led to the sales growth.

Access Systems product sales decreased 27.7% year-over-year due to lower volumes from strategically exiting product lines, unfavorable currency impacts and continued end-market weakness.

Operating income was $4.8 million or 1.9% of sales ($22.9 million adjusted1 or 9.0% of sales), compared to $20.9 million or 8.1% of sales in 2019. During the second quarter of 2020, a $16.6 million pre-tax non-cash impairment charge against goodwill and trade names was recorded and attributed to the Access Systems product line. Profitability improvement on an adjusted basis was led by pricing and improved performance in North American operations, partially offset by lower volumes in international markets.

Utility Support Structures Segment (33.6% of Sales)

Steel and concrete structures for global utility transmission, distribution, substations, and renewable energy generation equipment

Sales of $231.3 million grew 10.2% year-over-year, driven by significantly higher volumes from robust market demand and strategic capacity additions, and favorable pricing.

Operating income was $21.7 million or 9.4% of sales ($25.3 million or 10.9% adjusted1) compared to $16.0 million, or 7.6% of sales in 2019. Profitability growth was led by higher volumes and favorable pricing, and improved profitability in the international businesses.

Coatings Segment (11.6% of Sales)

Global galvanizing, painting and anodizing services to preserve and protect metal products

Sales of $80.0 million decreased 18.7% year-over-year. Higher internal volumes were more than offset by lower external volumes due to the impact from COVID-19 on end customers and temporary international facility closures.

Operating income was $10.1 million or 12.7% of sales ($10.4 million or 13.0% adjusted1), compared to $15.0 million or 15.3% of sales in 2019, due to lower volumes, partially offset by pricing.

Agriculture

Irrigation Segment (21.9% of Sales)

Agricultural irrigation equipment, parts, services and tubular products, water management solutions, and technology for precision agriculture

Global sales of $150.6 million decreased 3.0% year-over-year due to unfavorable currency impacts of $5.6 million, otherwise sales were similar to last year. Higher sales of irrigation products were offset by lower industrial tubing sales.

North American sales of $99.0 million were down 3.7% compared to 2019. Higher sales of irrigation products and pricing were more than offset by lower industrial tubing sales driven by lower steel costs.

International sales of $51.6 million decreased 1.5% compared to 2019. Sales volumes increased approximately 10.0% excluding unfavorable currency impacts, led by continued strong demand in Brazil and higher sales in European markets.

Segment operating income was $22.4 million, or 14.8% of sales, compared to $21.5 million, or 13.9% of sales in 2019. Profitability improvement was led by pricing and higher sales volumes. Higher SG&A expense included $1.4 million of incremental R&D expense for technology growth investments.

During the quarter, the Company purchased a majority stake in Solbras - Energia Solar do Brasil, a leading provider of solar energy solutions for agriculture that allows Valmont to deliver a first-to-market, advanced solar power and monitoring solution to growers. The Company also expanded its global technology leadership position with the asset purchase of PrecisionKingTM, a subscription-based provider of control technology and remote monitoring solutions for the U.S. market.

COVID-19 Business Continuity and Operations Update

Valmont is considered an essential business because of the products and services that serve critical infrastructure sectors and food security, as defined by many governments around the world. To protect the safety, health and well-being of employees, customers, suppliers and communities, CDC, WHO and local guidelines continue to be followed.

Beginning late in the first quarter, a number of Valmont manufacturing facilities outside of the U.S. were closed due to the pandemic. During the second quarter, all facilities resumed operations. Incremental expenses related to the pandemic during the quarter were approximately $2.5 million, or $0.09 per diluted share.

Valmont monitors health advisories on a continuous basis, particularly in areas reporting recent increases in infection. The Company continues to take deliberate steps to protect all stakeholders and minimize the operational and financial impacts on the business. To date, Valmont has not experienced any significant disruptions or changes to the supply of raw materials and other critical components, and is not currently experiencing meaningful delays in its global supply chain.

Balance Sheet, Liquidity and Capital Allocation

At the beginning of the second quarter the Company preemptively drew down $75.0 million of its $600.0 million revolving credit facility to ensure sufficient liquidity for business operations. This amount was repaid in full during the quarter. The Company has not experienced any meaningful slowdown in customer payments and has no significant long-term debt maturities until 2044. 2020 capital expenditures are expected to be in the range of $80.0 to $90.0 million to support strategic future growth initiatives. Valmont remains committed to maintaining its investment grade credit rating.

Third-Quarter 2020 Financial Outlook and Key Assumptions

Although the pandemic's impacts on global economic factors and pace of economic recovery remain unclear, the Company is providing a greater level of transparency during this time, including key assumptions and indications for third quarter 2020, to help the financial community understand short-term impacts and expectations.

Financial Outlook

Metrics

Estimates

Net Sales

$680.0 to $700.0M

Operating Profit Margin

8.0% to 9.0%

Segment Sales: Utility Support Structures

~20% Increase (vs. prior year)

Key Assumptions

  • Utility Support Structures sales estimate driven by higher sales in international businesses
  • Tax rate of ~ 25.0%
  • Unfavorable currency translation on net sales of $7.0M – $9.0M
  • Positive operating cash flows
  • Stable raw material costs and no significant supply chain interruptions
  • No closures of large manufacturing facilities or workforce disruptions

Kaniewski continued, "Our quick and decisive actions at the outset of the pandemic allowed us to mitigate the severity of its impact on our operating and financial results through the first half of the year. We continue to work diligently and safely to provide our customers with the essential products and solutions they need. The global backlogs in our infrastructure businesses are solid, providing a good line of sight for third quarter sales, and our balance sheet is strong. We continue to closely monitor all discretionary spending and capital expenditures, with an additional emphasis on managing working capital and cash flow. Through the use of lean and agile, we will continue to aggressively drive operational efficiencies. We will successfully navigate through these uncertain times by focusing on employee safety and well-being, remaining flexible, and managing what we can control to drive long-term shareholder value."

A live audio discussion with Stephen G. Kaniewski, President and Chief Executive Officer, and Avner M. Applbaum, Executive Vice President and Chief Financial Officer, will be accessible by telephone on Thursday, July 23, 2020 at 8:00 a.m. CDT by dialing 1-877-407-6184 or 1-201-389-0877 (no Conference ID needed), or via webcast by pointing browsers to this link: Valmont Industries 2Q 2020 Earnings Conference Call. A slide presentation will simultaneously be available for download on the Investors page at valmont.com. A replay of the event can be accessed two hours after the call at the above link or by telephone at 1-877-660-6853 or 1-201-612-7415. Please use conference identification number 13698672. The replay will be available through 10:59 p.m. CDT on July 30, 2020.

About Valmont Industries, Inc.

Valmont is a global leader, designing and manufacturing engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its irrigation equipment and services for large-scale agriculture improve farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service life of steel and other metal products. For more information, visit valmont.com.

Concerning Forward-Looking Statements

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management’s perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, the continuing and developing effects of COVID-19 including the effects of the outbreak on the general economy and the specific economic effects on the Company’s business and that of its customers and suppliers, risk factors described from time to time in Valmont’s reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.

1 Please see Reg G reconciliation of GAAP sales, operating income, net earnings and EPS to Adjusted figures at end of document

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands, except per share amounts)

(unaudited)

 

 

Second Quarter

 

Year-to-Date

 

13 Weeks Ended

 

26 Weeks Ended

 

 

 

 

 

 

 

 

 

27-Jun-20

 

29-Jun-19

 

27-Jun-20

 

29-Jun-19

Net sales

$

688,808

 

 

$

700,871

 

 

$

1,363,008

 

 

$

1,393,010

 

Cost of sales

 

504,871

 

 

 

522,695

 

 

 

992,822

 

 

 

1,050,207

 

Gross profit

 

183,937

 

 

 

178,176

 

 

 

370,186

 

 

 

342,803

 

Selling, general and administrative expenses

 

123,859

 

 

 

116,702

 

 

 

243,213

 

 

 

226,727

 

Impairment of goodwill and intangible assets

 

16,638

 

 

 

 

 

16,638

 

 

 

Operating income

 

43,440

 

 

 

61,474

 

 

 

110,335

 

 

 

116,076

 

Other income (expense)

 

 

 

 

 

 

 

Interest expense

 

(10,098

)

 

 

(10,117

)

 

 

(20,112

)

 

 

(19,995

)

Interest income

 

458

 

 

 

1,036

 

 

 

1,501

 

 

 

1,846

 

Gain (loss) on investments (unrealized)

 

2,510

 

 

 

1,520

 

 

 

202

 

 

 

4,352

 

Other

 

(694

)

 

 

156

 

 

 

1,116

 

 

 

1,170

 

 

 

(7,824

)

 

 

(7,405

)

 

 

(17,293

)

 

 

(12,627

)

Earnings before income taxes

 

35,616

 

 

 

54,069

 

 

 

93,042

 

 

 

103,449

 

Income tax expense

 

12,602

 

 

 

13,401

 

 

 

27,088

 

 

 

25,703

 

Equity in earnings (loss) of nonconsolidated subsidiaries

 

(260

)

 

 

 

 

(479

)

 

 

Net earnings

 

22,754

 

 

 

40,668

 

 

 

65,475

 

 

 

77,746

 

Less: Loss (earnings) attributable to non-controlling interests

 

(147

)

 

 

(949

)

 

 

61

 

 

 

(1,923

)

Net earnings attributable to Valmont Industries, Inc.

$

22,607

 

 

$

39,719

 

 

$

65,536

 

 

$

75,823

 

 

 

 

 

 

 

 

 

Average shares outstanding (000's) - Basic

 

21,312

 

 

 

21,734

 

 

 

21,383

 

 

 

21,810

 

Earnings per share - Basic

$

1.06

 

 

$

1.83

 

 

$

3.06

 

 

$

3.48

 

 

 

 

 

 

 

 

 

Average shares outstanding (000's) - Diluted

 

21,393

 

 

 

21,831

 

 

 

21,471

 

 

 

21,897

 

Earnings per share - Diluted

$

1.06

 

 

$

1.82

 

 

$

3.05

 

 

$

3.46

 

 

 

 

 

 

 

 

 

Cash dividends per share

$

0.450

 

 

$

0.375

 

 

$

0.900

 

 

$

0.750

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(unaudited)

 

 

Second Quarter

 

Year-to-Date

 

13 Weeks Ended

 

26 Weeks Ended

 

27-Jun-20

 

29-Jun-19

 

27-Jun-20

 

29-Jun-19

Net sales

 

 

 

 

 

 

 

Engineered Support Structures

$

253,385

 

 

$

258,748

 

 

$

484,127

 

 

$

489,036

 

Utility Support Structures

 

231,324

 

 

 

209,829

 

 

 

456,785

 

 

 

453,751

 

Coatings

 

80,005

 

 

 

98,406

 

 

 

168,090

 

 

 

185,185

 

Infrastructure products

 

564,714

 

 

 

566,983

 

 

 

1,109,002

 

 

 

1,127,972

 

Irrigation

 

150,639

 

 

 

155,185

 

 

 

307,359

 

 

 

308,001

 

Less: Intersegment sales

 

(26,545

)

 

 

(21,297

)

 

 

(53,353

)

 

 

(42,963

)

Total

$

688,808

 

 

$

700,871

 

 

$

1,363,008

 

 

$

1,393,010

 

 

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

Engineered Support Structures

$

4,818

 

 

$

20,882

 

 

$

20,749

 

 

$

33,327

 

Utility Support Structures

 

21,650

 

 

 

16,033

 

 

 

49,374

 

 

 

41,081

 

Coatings

 

10,148

 

 

 

15,032

 

 

 

21,202

 

 

 

25,172

 

Infrastructure products

 

36,616

 

 

 

51,947

 

 

 

91,325

 

 

 

99,580

 

Irrigation

 

22,351

 

 

 

21,530

 

 

 

46,014

 

 

 

41,664

 

Corporate

 

(15,527

)

 

 

(12,003

)

 

 

(27,004

)

 

 

(25,168

)

Total

$

43,440

 

 

$

61,474

 

 

$

110,335

 

 

$

116,076

 

Valmont has aggregated its business segments into four global reportable segments as follows.

Engineered Support Structures: This segment consists of the manufacture and distribution of engineered metal and composite poles, towers, and components for global lighting, traffic, and wireless communication markets, engineered access systems, integrated structure solutions for smart cities, and highway safety products.

Utility Support Structures: This segment consists of the manufacture of engineered steel and concrete structures for global utility transmission, distribution, substations, and renewable energy generation equipment.

Coatings: This segment consists of global galvanizing, painting and anodizing services to preserve and protect metal products.

Irrigation: This segment consists of the global manufacture of agricultural irrigation equipment, parts, services, tubular products, water management solutions, and technology for precision agriculture.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(unaudited)

 

 

27-Jun-20

 

28-Dec-19

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

353,348

 

$

353,542

Accounts receivable, net

 

500,838

 

 

480,000

Inventories

 

449,516

 

 

418,370

Contract asset - costs and profits in excess of billings

 

125,004

 

 

141,322

Prepaid expenses and other assets

 

51,113

 

 

32,043

Refundable income taxes

 

 

6,947

Total current assets

 

1,479,819

 

 

1,432,224

Property, plant and equipment, net

 

563,783

 

 

558,129

Goodwill and other assets

 

788,240

 

 

816,863

 

$

2,831,842

 

$

2,807,216

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Current installments of long-term debt

$

2,587

 

$

760

Notes payable to banks

 

14,577

 

 

21,774

Accounts payable

 

241,294

 

 

197,957

Accrued expenses

 

180,950

 

 

167,264

Contract liability - billings in excess of costs and earnings

 

138,820

 

 

117,945

Income taxes payable

 

16,984

 

Dividend payable

 

9,613

 

 

8,079

Total current liabilities

 

604,825

 

 

513,779

Long-term debt, excluding current installments

 

778,283

 

 

764,944

Other long-term liabilities

 

296,032

 

 

338,748

Shareholders' equity

 

1,152,702

 

 

1,189,745

 

$

2,831,842

 

$

2,807,216

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(unaudited)

 

 

YTD

 

YTD

 

27-Jun-20

 

29-Jun-19

Cash flows from operating activities

 

 

 

Net Earnings

$

65,475

 

 

$

77,746

 

Depreciation and amortization

 

40,584

 

 

 

40,583

 

Impairment of long-lived assets

 

18,896

 

 

 

Contribution to defined benefit pension plan

 

(17,138

)

 

 

(13,682

)

Change in working capital

 

42,280

 

 

 

2,801

 

Other

 

647

 

 

 

5,989

 

Net cash flows from operating activities

 

150,744

 

 

 

113,437

 

 

 

 

 

Cash flows from investing activities

 

 

 

Purchase of property, plant, and equipment

 

(48,165

)

 

 

(49,310

)

Proceeds from sale of assets

 

169

 

 

 

466

 

Acquisitions

 

(15,862

)

 

 

(81,841

)

Other

 

10,846

 

 

 

15,077

 

Net cash flows from investing activities

 

(53,012

)

 

 

(115,608

)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from long-term borrowings

 

88,872

 

 

 

31,000

 

Proceeds (payments) from short-term borrowings

 

(6,255

)

 

 

9,886

 

Principal payments on long-term borrowings

 

(75,568

)

 

 

(10,386

)

Purchase of treasury shares

 

(20,481

)

 

 

(38,350

)

Purchase of noncontrolling interest

 

(55,916

)

 

 

(27,845

)

Dividends paid

 

(17,704

)

 

 

(16,425

)

Other

 

(4,923

)

 

 

(3,542

)

Net cash flows from financing activities

 

(91,975

)

 

 

(55,662

)

Effect of exchange rates on cash and cash equivalents

 

(5,951

)

 

 

1,567

 

Net change in cash and cash equivalents

 

(194

)

 

 

(56,266

)

Cash and cash equivalents - beginning of year

 

353,542

 

 

 

313,210

 

Cash and cash equivalents - end of period

$

353,348

 

 

$

256,944

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS

REGULATION G RECONCILIATION

(Dollars in thousands, except per share amounts)

(unaudited)

The non-GAAP tables below disclose the impact on (a) diluted earnings per share of (1) impairment of goodwill, tradenames, and a facility and (2) restructuring costs (b) operating income from these expenses, and (c) segment operating income for these items. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported GAAP measures.

 

Thirteen
weeks ended
June 27, 2020

 

Diluted

 

Twenty-six
weeks ended
June 27, 2020

 

Diluted

 

 

earnings per

 

 

earnings per

 

 

share

 

 

share

Net earnings attributable to Valmont Industries, Inc. - as reported

$

22,607

 

 

$

1.06

 

 

$

65,536

 

 

$

3.05

 

Impairment of goodwill and tradename, pre-tax

 

16,638

 

 

 

0.78

 

 

 

16,638

 

 

 

0.77

 

Restructuring and related asset impairment costs - pre-tax

 

5,579

 

 

 

0.26

 

 

 

5,579

 

 

 

0.26

 

Total Adjustments

 

22,217

 

 

 

1.04

 

 

 

22,217

 

 

 

1.03

 

Tax effect of adjustments *

 

(1,977

)

 

 

(0.09

)

 

 

(1,977

)

 

 

(0.09

)

Net earnings attributable to Valmont Industries, Inc. - Adjusted

$

42,847

 

 

$

2.00

 

 

$

85,776

 

 

$

3.99

 

Average shares outstanding (000’s) - Diluted

 

 

 

21,393

 

 

 

 

 

21,471

 

* The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction.

 

 

Thirteen
weeks ended
June 27, 2020

 

Twenty-six
weeks ended
June 27, 2020

 

 

 

Operating Income Reconciliation

 

 

Operating income - as reported

 

$

43,440

 

 

$

110,335

 

Impairment of goodwill and tradename

 

 

16,638

 

 

 

16,638

 

Restructuring and related asset impairment costs

 

 

5,579

 

 

 

5,579

 

Adjusted Operating Income

 

$

65,657

 

 

$

132,552

 

Net Sales - as reported

 

 

688,808

 

 

 

1,363,008

 

Operating Income as a % of Sales

 

 

6.3

%

 

 

8.1

%

Adjusted Operating Income as a % of Sales

 

 

9.5

%

 

 

9.7

%

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS

REGULATION G RECONCILIATION (CONTINUED)

For the second quarter ended June 27, 2020

 

Engineered

 

Utility

 

 

 

 

 

 

 

Support

 

Support

 

 

 

 

 

 

Segment Operating Income Reconciliation

Structures

 

Structures

 

Coatings

 

Irrigation

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income - as reported

$

4,818

 

 

$

21,650

 

 

$

10,148

 

 

$

22,351

 

 

$

(15,527)

 

Impairment of goodwill and tradename

 

16,638

 

 

 

 

 

 

 

 

 

Restructuring and related asset impairment costs

 

1,462

 

 

 

3,674

 

 

 

222

 

 

 

 

 

221

 

Adjusted Operating Income

$

22,918

 

 

$

25,324

 

 

$

10,370

 

 

$

22,351

 

 

$

(15,306)

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

253,385

 

 

$

231,324

 

 

$

80,005

 

 

 

150,639

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income as a % of Sales

 

1.9

%

 

 

9.4

%

 

 

12.7

%

 

 

14.8

%

 

NM

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income as a % of Sales

 

9.0

%

 

 

10.9

%

 

 

13.0

%

 

 

14.8

%

 

NM

 

 

 

 

 

 

 

 

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200722005882/en/

Contacts

Renee Campbell
+1 402.963.1057